New Zealand company directors banned from running businesses on this side of the Tasman will in future be automatically disqualified in Australia.
Australia's Minister for Corporate Law, Senator Nick Sherry, has this week introduced a law change to ensure individuals disqualified from managing companies in foreign countries would
also be banned in Australia.
But the legislation would initially only affect banned company directors from New Zealand, he said in a statement.
"There is a gap in the existing law where individuals can avoid disqualification by moving to Australia," he said. This is totally unacceptable, so we'll be closing that gap."
The Australian Government hopes to pass the bill as soon as possible next year.
Over a dozen people have been banned this year from being directors of New Zealand companies. They include:
* Three directors of failed finance company National Finance 2000, Trevor Ludlow, Carol Braithwaite and Anthony Banbrook, banned for four years.
* Property developer Peter Chevin, who developed Auckland's skinniest high-rise tower in Wyndham St. He is banned until February 2012.
* Christchurch property developer Tristram Whimp, banned for a year.
His brother Bernard is also currently banned.
Twenty-one people were banned as company directors in 2007.
Shareholders Association chairman Bruce Sheppard welcomed the Australian move, and called for reciprocal arrangements with a number of countries.
He said rogue directors from other countries popping up here was a problem. "They do a runner, wash their feet at the airport and say 'now I'm clean'."
However Sheppard noted it was probably even easier for New Zealand banned directors to turn up in other markets because they did not receive international media coverage.
Australia's Sherry said he would discuss with other countries the possibility of extending the disqualification regime to other jurisdictions in 2009.
Under his proposed Corporations Amendment (No 1) Bill 2008, the Australian Securities and Investments Commission will have powers to apply for a court order to have the person disqualified, if a court in their home country has not previously done so.
